Corporacion America Airports Q2 2025 Earnings Report

Corporacion America Airports EPS Results

• Actual EPS: $0.30
• Consensus EPS: $0.47
• Beat/Miss: Missed by -$0.17
• One Year Ago EPS: N/A

Corporacion America Airports Revenue Results

• Actual Revenue: $476.80 million
• Expected Revenue: $423.15 million
• Beat/Miss: Beat by +$53.65 million
• YoY Revenue Growth: N/A

Corporacion America Airports Announcement Details

• Quarter: Q2 2025
• Date: 8/20/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, August 21, 2025
• Conference Call Time: 10:00AM ET

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.

Corporacion America Airports Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Passenger traffic rose 13.7% year-over-year with total revenues up 18.9% and revenue per passenger increasing 4.5% to $21, fueling a 23% jump in adjusted EBITDA and a margin expansion to 38.6%.
• Positive Sentiment: Argentina, Italy, Uruguay and Armenia each set new second-quarter traffic records, with Argentina delivering 17% growth—domestic up 16% and international up 19%—and Italy, Uruguay and Armenia also posting all-time highs.
• Positive Sentiment: Cargo revenues surged 30% year-over-year, led by Argentina, Brazil and Uruguay, driven by higher volumes, improved pricing dynamics and new service offerings.
• Positive Sentiment: The company closed the quarter with $595 million in liquidity, reduced net debt to $643 million for a record 1.0x net leverage ratio, and secured a $150 million dividend distribution from its Argentine subsidiary AA2000.
• Positive Sentiment: Growth initiatives advanced with environmental approval for the Florence Airport master plan, expansion of duty-free and retail areas in Argentina and Brazil, and ongoing pursuit of new concessions and M&A opportunities including the CCR airport sale.

Presentation

[Operator]

Good morning, and welcome to the Corporacion America Airports Second Quarter twenty twenty five Conference Call. A slide presentation accompanies today's webcast and is available in the Investors section of the company's website. As a reminder, all participants are in a listen only mode. There will be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the call over to Patricio Inaki Espnola, Head of Investor Relations. Patricio, please go ahead.

[Patricio Esnaola, Head - IR at Corporación América Airports]

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martina Orniquan, our Chief Executive Officer and Jorge Arruda, our Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward looking statements, and I refer you to the Forward Looking Statements section of our earnings release and recent filings with the SEC.

[Patricio Esnaola, Head - IR at Corporación América Airports]

We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances. Please note that throughout the call, all references to revenues, costs, adjusted EBITDA and margin will refer to figures excluding Alfrig twelve. I will now turn the call over to our CEO, Martin Ornigian.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

Thank you, Iagi. Good day, everyone, and thank you for joining us today. I am pleased to report an excellent quarter for CAAP. Passenger traffic was up almost 14% from last year, with strong growth in the great majority of our markets. Argentina had a standout performance, hitting a new second quarter historical record with double digit increases in both international and domestic travel.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

We also saw solid gains in Brazil, Italy, Uruguay and Armenia, while Ecuador remained largely flat. Italy, Uruguay and Armenia also hit new second quarter historical records. On the top line, revenues grew nearly 19%, outpacing passenger growth and demonstrating a strong execution of our management team in increasing revenues per passenger as well as the quality of our portfolio. Revenue per passenger edged up to $21 driven by steady contributions for cargo, parking, VIP lounges and duty free. This led to a 23% year over year increase in adjusted EBITDA supported by notable contributions from Argentina, Uruguay and Armenia with the margin up 1.4 percentage points to 38.6%.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

We closed the quarter with a very strong financial position that gives us flexibility to keep moving on our growth plans. We also wanted to highlight that we obtained environmental approval from the region of Tuscan for the Florence Airport Master Plan in April. Lastly, our Argentine subsidiary, AA2000, has recently approved a $150,000,000 dividend distribution. Moving on to Slide four. We saw a very strong traffic performance across operation, except Ecuador, where traffic was flat.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

Total passenger traffic increased 13.7% year over year to nearly 21,000,000 passengers, accelerating from the 7% growth or 9% ex Natal reported in the first quarter. Domestic traffic rose just under 15% driven primarily by a recovery in demand in Argentina and Brazil and to a lesser extent in Italy. International traffic increased 12% with positive contributions from all markets except Ecuador and particularly strong results in Argentina and Italy, which together accounted for more than 80% of the year over year increase in the quarter. Brazil, Uruguay and Armenia also posted strong growth in international traffic. Let's look at performance by country.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

In Argentina, our largest market, overall traffic growth accelerated to 17% from nearly 13 in the first quarter. Domestic traffic was up 16%, supported by sustained demand recovery and multiple route assumptions. On the international front, traffic increased close to 19%, reflecting new and expanded services from carriers such as JetSmart, Gold, Sky, Azul, LATAM, Avianca and Europa. This strong performance continued into July with domestic and international passenger traffic increasing by 1013% respectively. Italy delivered a 9% increase in traffic, reaching a second quarter record, driven by both domestic and international travel.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

International traffic representing 81% of the total was up 9%, supported by strong growth at Florence and Pisa airports. Domestic volumes grew 11%, led by nearly 20% growth at Pisa, mainly reflecting dryness frequency increases. This solid performance continued into July with domestic and international passenger traffic increasing by 86% respectively. Brazil recorded a 15% year over year increase in traffic, with domestic traffic up nearly 14% and transit passengers up 15%. International traffic, though a smaller share of the mix, grew over 41% with routes to The U.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

S. Reaching record highs. In July, overall traffic increased by 6% against July. In Uruguay, traffic was up nearly 9%, marking also a second quarter record. The performance in the quarter benefited from the strong activity during Easter holiday.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

Azul announced the introduction of a new route between Montevideo and Campinas, which began operating last month. In July, overall traffic in Uruguay declined 6% year over year, mainly impacted by the removal of the Montevideo Buenos Aires route by JetSmart as well as several days of adverse weather conditions that led to flight cancellations. In Armenia, traffic was up 8%, fueled by the arrival of several new carriers, including China Southern, El Cairo, Salam Air and Sky Express and the announcement of a WIIS airbase launching 18 European routes. These developments are strengthening connectivity and supporting our roles in positioning Armenia as a regional hub. Traffic in July rose by 7% against the same period last year.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

Lastly, traffic in Ecuador was broadly flat with a 0.5% decline in total passengers. Domestic traffic rose slightly when international volumes declined impacted by reduced U. S. Operations. High airport levels and still challenging security environment in the country continued to affect travel.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

In July, traffic remained broadly flat compared to July 2024. In sum, this was a record second quarter for Argentina, Italy, Uruguay and Armenia, highlighting the strength and resilience of our network and our ability to capture growth across diverse geographies. Turning now to cargo on Slide five. We delivered another strong quarter with cargo revenues up 30% year over year, led by Argentina, Brazil and Uruguay. The increase reflected not only higher volumes in key markets, but also improved pricing dynamics and new revenue streams.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

In Argentina, cargo revenues were boosted by the new cargo business model implemented in mid March, which is delivering as planned. Uruguay also saw a solid lift from tariff increases in the courier segment, while Brazil benefited from increased higher pharma imported volumes as well as higher average ticket on domestic cargo. Armenia maintained its positive trend, contributing meaningfully to overall volumes. Looking ahead, we will continue to build on this momentum, enhancing our cargo capabilities and leveraging growth opportunities across our airports, while maintaining a competitive and efficient cost structure. I will now turn the call over to Jorge, who will review our financial results. Please go ahead.

[Jorge Arruda, CFO at Corporación América Airports]

Thank you, Martin, and good day, everyone. Let's start with our top line on Slide six. Total revenues Exitrig '12 increased 18.9% year over year, outpacing passenger traffic growth of 13.7%. This strong performance was driven by double digit growth in Argentina, Armenia, Italy and Uruguay, Excluding the one time litigation benefit recorded in the 2024, Brazil also delivered double digit revenue growth, further supporting our solid results. Our revenue per passenger was up 4.5% to $21 from $20.1 last year.

[Jorge Arruda, CFO at Corporación América Airports]

Aeronautical revenues were up 15.1%, mainly supported by the strong performance we saw in Argentina coupled with positive contributions from all countries except Ecuador. In Argentina, revenues were up more than 20% supported by an 18.5% year on year increase in international traffic and to a lesser extent, domestic passenger fees following the tariff adjustment implemented in November. Strong momentum continued in Argentina, Uruguay and Italy, each delivering double digit growth, while Brazil posted a 9.5% increase in line with passenger traffic trends. In contrast, Ecuador reported a 2.2 revenue decline reflecting a modest drop in traffic during the quarter. Commercial revenues were up 22% year on year well above the 13.7% increase in traffic driven by higher cargo revenues and solid performance across parking facilities, VIP lounges, duty free stores and other passenger related services.

[Jorge Arruda, CFO at Corporación América Airports]

Food related revenues primarily in Armenia also contributed to the increase. Growth was particularly strong in Argentina and Armenia, up 2726% respectively with additional double digit gains in Italy and Uruguay further highlighting the strength of our portfolio. Turning to Slide seven, total cost and expenses excluding IFRIC twelve were up 16.8% year over year in line with higher activity, but below revenue growth of nearly 19%. Cost of services rose by 15.4%, primarily reflecting higher concession fees and maintenance expenses tied to increased activity in Argentina as well as higher fuel costs in Armenia consistent with the growth in fuel revenues. SG and A expenses increased 22% largely due to higher salaries in Argentina driven primarily by inflation outpacing currency devaluation and tough comparisons with the second quarter twenty twenty four.

[Jorge Arruda, CFO at Corporación América Airports]

We note however that total cost and expenses in Argentina excluding IFRIC 12, declined 5.5% in the second quarter compared to the prior quarter, confirming the improved trend we signaled in our first quarter earning call. Moving on to profitability on Slide eight. Adjusted EBITDA ex Restrict 12 reached $169,000,000 up 23% year over year, mainly driven by a 34% increase in Argentina and positive contributions from all countries except Ecuador. Uruguay delivered another consecutive quarter of strong growth with adjusted EBITDA up 27% supported by a steady traffic gains and robust commercial performance, particularly in cargo and other passenger related revenues such as duty free and VIP lounges. Armenia delivered double digit growth underpinned by traffic growth and robust fuel revenues contributing to the positive momentum across our key markets.

[Jorge Arruda, CFO at Corporación América Airports]

Adjusted EBITDA at Brasilia Airport was up 16% excluding the one time benefit of $1,700,000 from the resolution of a litigation process, which was recorded in second quarter twenty twenty four. In Italy, EBITDA increased 2% or 14% when excluding other construction service related costs at Toscanero Porte Consozzoni, a subsidiary of Toscanero Porte. Adjusted EBITDA in Ecuador declined 3% reflecting weaker passenger traffic during the period. Adjusted EBITDA margin ex IFRIC twelve expanded 1.4 percentage points year over year to 38.6%, mainly driven by margin improvements in Argentina and Uruguay. Notably, in Argentina, we achieved a 3.2 percentage point margin expansion supported by strong traffic growth and robust commercial revenues despite continued pressure on Argentine peso costs from inflation running ahead of currency depreciation and tough year over year comparisons.

[Jorge Arruda, CFO at Corporación América Airports]

Turning to Slide nine, On the back of our strong cash flow generation, we closed the quarter with a total liquidity position of $595,000,000 up 13% from the $526,000,000 recorded at year end 2024. Notably, all of our operating subsidiaries reported positive year to date cash flow from operating activities except for Ecuador due to the one time annual concession fee payment, which is due and paid every January. Cash used in financing activities reflected debt repayments in Argentina and Ecuador as well as dividends paid to non controlling interest in subsidiaries. As Martin noted at the beginning of the call, driven by strong cash generation, our Argentine subsidiary has recently approved a dividend distribution of $150,000,000 of which $127,500,000 will be paid to cap. We are very pleased with the performance of our operations in Argentina, which enables us to meet our CapEx commitments, pay our debt service and distribute excess cash to strengthen our consolidated cash position.

[Jorge Arruda, CFO at Corporación América Airports]

Moving on to the debt and maturity profile on Slide 10. Total debt at quarter end was $1,100,000,000 while our net debt decreased to $643,000,000 from $718,000,000 in December 2024. Our net leverage ratio improved to a record low of one time driven by lower net debt and stronger adjusted EBITDA levels. To wrap up, we delivered stronger operating and financial results ending the quarter with a solid balance sheet and healthy debt position. We remain focused on pursuing both organic and inorganic growth opportunities to enhance our airport portfolio and create value.

[Jorge Arruda, CFO at Corporación América Airports]

I will now hand the call back to Martin, who will provide closing remarks and discuss our view for the remainder of the year.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

To close, let's turn to Slide 12. This was a very strong second quarter with broad based passenger growth across our network that underscores the resilience and quality of our diversified portfolio. We continue to perform well, driving revenue growth and EBITDA margin expansion, while keeping a solid financial position. On the commercial front, we remain focused on enhancing non aeronautical revenues. In Argentina, we inaugurated the new duty free arrivals area at the Cesar Airport in May, expanding it from 700 to 1,100 square meters to improve the passenger experience and capture additional commercial opportunities.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

In Brazil, construction of the shopping mall at Brasilia Airport is progressing, with opening plan for April 2026 alongside other initiatives to grow food and beverage, retail and service offerings across the portfolio. Strategically, we are moving forward across our concessions. In Argentina, we are progressing with the AA2000 concession breakeven in process. In Italy, we secured environmental approval from the region of Tuscany for the Florence Airport master plan in April. While in Armenia, we continue to make progress on the CapEx program approvals to expand Yerevanaro.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

On the new business front, we are awaiting official resolution from the government of Montenegro and actively pursuing opportunities in Latin America, Iraq, Angola and other M and A initiatives among others. Looking ahead, we expect positive traffic momentum to continue in Argentina with strong summer seasons anticipated in both Italy and Romania. In sum, our second quarter performance underscores the strength of our geographic diversification, the quality of our portfolio, the effectiveness of our strategy and the dedication of our teams across markets. Operation, please open the lines for questions.

[Operator]

Thank you, ladies and gentlemen. We will now begin the question and answer session. Your first question is from Guillermo Mendez from JPMorgan. Your line is now open.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

Yes. Thank you. Good morning, Martin, Jorge and Yanc. Thanks for taking my questions. The first one is in Argentina.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

If you can provide some details on what are the next steps for the rig lever discussion? I know you can you don't have a lot of visibility on timing, but if you can share what should we expect on the next milestones that would be useful. And the second one, it's on Motiva's former CCR airport sales. If you are still interested on this asset, if this is something that you probably would bid alone or you consider doing so with a partner probably dividing the Brazilian assets to the non Brazilian assets? Thank you.

[Jorge Arruda, CFO at Corporación América Airports]

Thank you for your question. Let me start with the second one. We are looking at the asset. As you may know, it's a typical M and A process subject to NDA confidentiality, etcetera. But what we can say at this point in time is that we are looking at the asset.

[Jorge Arruda, CFO at Corporación América Airports]

It's an interest opportunity for CAPP we'll keep the market updated as we make progress in the process. Regarding Argentina, your first question, conversations with the technical teams are ongoing, have never been interrupted. The conversations includes the rebalancing of the economic equilibrium, investment requirements in the system among other aspects. There is a new Secretary of Transport since mid May. We are very engaged with all the authorities.

[Jorge Arruda, CFO at Corporación América Airports]

We believe that we are making good progress and we will keep the market updated as we make concrete steps into this process.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

Got it. Thank you, Georgi.

[Operator]

Thank you. There are no further questions at this time. I will now hand the call back over to Martin Ornikan for the closing remarks. Please proceed.

[Martín Antranik Eurnekian, CEO & Director at Corporación América Airports]

I would like to thank everyone for your participation and interest in our call. Remind you that our team remains available for any questions that you might have in the future. Thank you very much and please have a very good rest of your day. Bye bye.

[Operator]

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.

Participants

Analysts

• Patricio Esnaola, Head - IR at Corporación América Airports
• Martín Antranik Eurnekian, CEO & Director at Corporación América Airports
• Jorge Arruda, CFO at Corporación América Airports
• Guilherme Mendes, Executive Director - Equity Research at JP Morgan